9 March 2017 – El Mundo
Urbas Grupo Financiero has refinanced the €40.13 million debt that it holds with Sareb, to allow it to repay the bad bank over an eight-year period and achieve a discount of up to 32% on the original liability, provided it fulfils certain obligations, according to a statement issued by the company.
The operation forms part of the company’s strategy to cut costs and reduce debt to boost its business plan, which forecasts that the entity will resume its house building activity this year.
By virtue of the contract reached with Sareb, Urbas and its subsidiaries have agreed to novate the liability and they have set an eight-year schedule to pay back the bad bank.
Urbas and its companies will be entitled to receive discounts and the accrued interest on each annual payment will be cancelled provided that they fulfil a series of obligations. In this way, the total debt could be reduced to €27.16 million, i.e. 32% lower than the original amount.
Original story: El Mundo
Translation: Carmel Drake